The 10-second takeaway
For the quarter ended March 31 (Q2), Plexus met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased slightly and GAAP earnings per share dropped.
Margins dropped across the board.
Plexus tallied revenue of $573.5 million. The eight analysts polled by S&P Capital IQ hoped for a top line of $567.9 million on the same basis. GAAP reported sales were 0.9% higher than the prior-year quarter's $568.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.56. The nine earnings estimates compiled by S&P Capital IQ forecast $0.54 per share. GAAP EPS of $0.56 for Q2 were 5.1% lower than the prior-year quarter's $0.59 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 9.5%, 30 basis points worse than the prior-year quarter. Operating margin was 4.5%, 10 basis points worse than the prior-year quarter. Net margin was 3.5%, 70 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $604.6 million. On the bottom line, the average EPS estimate is $0.63.
Next year's average estimate for revenue is $2.34 billion. The average EPS estimate is $2.38.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 350 members out of 372 rating the stock outperform, and 22 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Plexus a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Plexus is outperform, with an average price target of $38.13.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.